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Nope. Just look back at the horrible-looking launch games for the last gen. It was the same amount of technical advancement from the generation prior. Same thing from 2 generations ago.

Every console in a generation (perhaps N64 is the lone exception) takes generally a year or so before its potential is shown. And honestly I'm tired of this 'diminishing returns' argument. Games are going to look ridiculous in 10 years, just like games do now compared to 10 years ago. Anyone who gives the 'diminishing returns' argument hasn't been in this world long enough to see that the generational advancements continue at the same pace they always have.